Oil prices slip as US rigs rise, demand growth falters

OPEC and its partners in the agreement for the global output cuts do not target any oil price and the volatility in the oil market is due to speculation, Al-Falih said.

Signs of faltering demand stoked weak sentiment, prompting price levels comparable to when the output cuts were first announced late a year ago.

Brent crude futures were at $46.97 per barrel at 0436 GMT, only slightly above their last settlement.

Meanwhile, the price for July futures of West Texas Intermediate (WTI) has grown by 0.04 percent and stood at $44.76 per barrel.

Traders said that the main factor driving the low prices was a steady rise in United States production undermining the Opec-led effort to tighten the market.

"That's 22 weeks in a row that oil rigs have been added, a record run", said Greg McKenna, chief market strategist at futures brokerage AxiTrader. Last month, OPEC producers and 11 participating non-OPEC countries including Russian Federation formally ratified the agreement first drafted last November to cut supplies by 1.76 million barrels per day. In the last week, there was an increase of 6 operating rigs in the USA, pushing the total number to 747, the highest since April 2015.

The oil market is expected to balance in the fourth quarter even as output from fellow OPEC members Libya and Nigeria as well as from shale oil producers is on the rise, according to Saudi Energy Minister Khalid Al-Falih.

There are also indicators that demand growth in Asia, the world's biggest oil consuming region, is stalling.

India, which recently overtook Japan as Asia's second biggest oil importer, saw May's demand for oil fall by 4.2 per cent in May, compared with the same month past year In China, which is challenging the United States as the world's biggest importer, oil demand growth has been slowing for some time, albeit from record levels, and analysts expect growth to slow further in coming months.

"In my opinion, market fundamentals are going in the right direction, but in light of the large surplus in stockpiles over the past years, the cut needs time to take effect", he told the newspaper, referring to a global deal to curb oil production. In China, oil demand growth has been slowing for some time, albeit from record levels.

Newsletter has been successfully subscribed.

Share

Related Articles

Aluminum composite panels essentially consist of two thin layers of aluminum sandwiched around a lightweight insulating material. Queen Elizabeth II and Prince William visited an aid distribution site Friday for the tower's residents and met with volunteers.

Qatar's neighbors have also criticized Qatar for allegedly supporting groups like the Muslim Brotherhood and Hamas. Iran blamed arch-foe Saudi Arabia for the attack, which was claimed by the Islamic State militant group.

The bullet entered Scalise's left hip and tore through his pelvis, breaking bones, injuring organs and causing severe bleeding. After additional surgeries and a period of rehabilitation, Sava said that the congressman should be able to walk and even run.

BJP chief Amit Shah held a close-door meeting with Shiv Sena chief Uddhav Thackeray at the latter's residence on Sunday. In itially, Shiv Sena had proposed the name of RSS chief Mohan Bhagwat as NDA's presidential nominee.

His tweet took Khan's comment that Londoners had " no reason to be alarmed " about the increased police presence out of context. And as the president of the world's superpower, Mr Trump should be advised to do the same: to think before he tweets.

England have now gone 35 games and nearly eight years since they last lost a World Cup or European Championship qualifying match. We knew it was going to be tough away from home, global qualifier, Scotland are doing everything to stay in the World Cup".

On Thursday, the hospital reiterated that Scalise will need more operations and will be in the hospital "for some time". House Minority Leader Nancy Pelosi (D-Calif.) said that on Thursday night, everyone will be "Team Scalise".

Trump denies it even though he has the authority under the Constitution to fire Comey for any reason or no reason at all. He heads the McDermott, Will and Emery firm's government strategies practice. "Nice", Trump wrote in his first tweet .

With several first-choice players in the All Blacks squad, the Chiefs are understrength for the clash in Hamilton . The Maori stunned the Lions 19-13 some 12 years back, but here the tourists wrestled their hosts into submission.

Open has played as a par 72. "Hopefully I've got a lot of the bad stuff out of my system yesterday and some parts today". It dropped him two shots off the lead and, to add insult to injury, it will still count as a three-putt.

Latest news

Television Batman star Adam West dies at 88
Adam West , the actor who found fame playing the role of Batman in the campy 1960s television series, has died . Given that you can not have Adam West the Mayor without Adam West the person, the character should be retired.

ICC Champions Trophy 2017 Final
But just when it seemed good for the Pakistan team, Malik played a loose short off pacer Bhuvneshwar Kumar and gifted his wicket. With the bat in hand, India found themselves under early pressure after losing both Virat Kohli and Rohit Sharma for just 6 runs.

Fakhar, Amir sparkle as Pakistan stun India
Mohammad Amir celebrates taking the wicket of India's Rohit Sharma , lbw for 0 during the ICC Champions Trophy final . They had a fair share of luck with inside edges missing the stumps and mishits falling short of fielders.

Congressman, others wounded in shooting in Va.
Although Scalise was able to talk on the ballfield, by the time he was transported by helicopter to the hospital, he was in shock. The doctor said Scalise has been sedated although the dosage has been turned down to allow him to respond to family members.

Representative Steve Scalise's Condition Improves to "Serious"
Doctors immediately performed surgery, but additional operations will be required, the hospital said in the late-night statement. He had with him a piece of paper with doodles and the names of three politicians, according to a person familiar with the case.

Congressman Scalise's condition improves after another surgery
Scalise was one of five people shot when a gunman opened fire Wednesday as the Republican team practiced in Alexandria, Virginia . Griner remained in the hospital in good condition after sustaining a gunshot wound to the ankle, according to a Friday update.

Shot congressman Steve Scalise off the critical list
Officials confirmed the list to the New York Times and also said that Hodgkinson had pictures of the ballpark on his cell phone. Doctor Sava described Scalise's shot to his left hip as a devastating "trans-pelvic gunshot wound" from a high-velocity rifle.

Beyonce and Jay Z welcome twins
The singer gave birth to the twins in a Los Angeles-area hospital some time last week, according to multiple sources. The announcement got more than 8 million "likes" in the first 24 hours to become the "most-liked" Instagram ever.